Which of the following best describes why indifference curves cannot cross?
A)If indifference curves cross, there are situations where individuals are indifferent between bundles where one bundle contains strictly more of both goods than the other bundle.
B)If indifference curves cross, individuals are not necessarily consuming along their budget line.
C)If indifference curves cross, the marginal rate of substitution can be both increasing and decreasing at a specific point.
D)If indifference curves cross, the goods can be both substitutes and complements.

Question

Which of the following best describes why indifference curves cannot cross?​
A)​If indifference curves cross, there are situations where individuals are indifferent between bundles where one bundle contains strictly more of both goods than the other bundle.
B)​If indifference curves cross, individuals are not necessarily consuming along their budget line.
C)​If indifference curves cross, the marginal rate of substitution can be both increasing and decreasing at a specific point.
D)​If indifference curves cross, the goods can be both substitutes and complements.

Quizplus · Accepted Answer

If indifference curves cross, individuals can find themselves indifferent between such two situations where one bundle contains strictly more of both goods than the other bundle. This violates the basic assumption of rationality and consistency in consumer choice theory.

Which of the Following Best Describes Why Indifference Curves Cannot